NADA: Financial Reform Law Protects
Consumers and Keeps Auto Financing Affordable,
Accessible
All auto loans and lending sources will see additional oversight
July 21, 2010 01:07 PM Eastern Daylight Time
WASHINGTON--(EON: Enhanced Online News)--With President Obama’s signature, the most significant
overhaul of the nation’s financial system is now law and with it, consumers will still be able to find competitive
financing options at auto dealerships.
Ed Tonkin, chairman of the National Automobile Dealers Association (NADA), praised the efforts of lawmakers
who fought to preserve the existing regulatory structure for dealer-assisted financing, which protects consumers and
ensures affordable auto credit.
Tonkin also cautioned that any regulatory overreach could hurt the very people it is looking to protect by disrupting
the extremely competitive auto finance marketplace.
Tonkin released the following statement:
“Car buyers will ultimately benefit from the new law because it preserves dealer-assisted financing as a convenient
and affordable option for consumers. The Brownback-Campbell auto dealer language received strong bipartisan
support because Congress clearly understood that placing burdensome and unnecessary rules on small business
dealers who merely arrange loans would make it harder and more expensive for car buyers to access auto credit.
“The new law balances strong consumer protections and affordable access to auto credit. The Federal Trade
Commission, the Federal Reserve and 50 state consumer protection agencies will continue to oversee dealership’s
finance operations. The new law maintains existing consumer protection laws, while permitting millions of American
families to continue to have multiple financing options to purchase a vehicle.
“The newly-created Bureau of Consumer Financial Protection will have direct federal oversight over all auto loans
and those that underwrite, fund or service auto loans, such as banks, credit unions, finance companies and ‘buy
here-pay here’ operations at dealerships. As the new law is fully implemented, we urge regulators to closely examine
how new rules will impact a family’s ability to finance a vehicle.”
About NADA: The National Automobile Dealers Association, founded in 1917, represents nearly 17,000 new-car
and -truck dealers with about 37,500 franchises, both domestic and international. For more information, visit
www.NADA.org and www.NADAFrontPage.com.
Contacts
NADA Legislative Affairs
Bailey Wood, 202-547-5500
202-557-1674 (mobile)
bwood@nada.org
or
NADA Public Affairs
Charles Cyrill, 703-821-7121
216-870-8837 (mobile)
ccyrill@nada.org
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